Bill Text: CA SB214 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Infrastructure financing districts: voter approval:

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2012-09-29 - In Senate. Consideration of Governor's veto pending. [SB214 Detail]

Download: California-2011-SB214-Amended.html

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BILL NUMBER: SB 214	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 21, 2011
	AMENDED IN SENATE  APRIL 25, 2011

INTRODUCED BY   Senator Wolk
    (   Coauthor:   Assembly Member  
Williams   ) 

                        FEBRUARY 8, 2011

   An act to amend Sections 53395, 53395.3, 53395.4, 53395.5,
53395.6, 53395.7, 53395.10, 53395.11, 53395.12, 53395.14, 53395.19,
53395.20, 53396, 53397.1, and 53397.2 of, and to repeal Sections
53395.21, 53395.22, 53395.23, 53395.24, 53395.25, 53397.4, 53397.5,
53397.6, and 53397.7 of, the Government Code, relating to
infrastructure financing districts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 214, as amended, Wolk. Infrastructure financing districts:
voter approval: repeal.
   (1) Existing law authorizes a legislative body, as defined, to
create an infrastructure financing district, adopt an infrastructure
financing plan, and issue bonds, for which only the district is
liable, to finance specified public facilities, upon voter approval.
   This bill would  revise the provisions governing the public
facilities that may be financed. The bill would  eliminate the
requirement of voter approval and authorize the legislative body to
create the district, adopt the plan, and issue the bonds by
resolutions. The bill would authorize a district to finance specified
actions and projects and prohibit the district from providing
financial assistance to a vehicle dealer or big box retailer, as
defined.
   (2) Existing law requires that an infrastructure financing plan
created by a legislative body include a date on which the district
will cease to exist, which shall not be more than 30 years from the
date on which the ordinance forming the district is adopted.
   This bill instead would specify that the date on which the
district would cease to exist would not be more than 40 years from
the date on which the legislative body adopted the resolution
adopting the infrastructure financing plan. The bill would also
impose additional reporting requirements after the adoption of an
infrastructure financing plan.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 53395 of the Government Code is amended to
read:
   53395.  (a) The Legislature finds and declares that the state and
federal governments have withdrawn in whole or in part from their
former role in financing infrastructure, including highways and
interchanges, sewage treatment and water reclamation works, water
supply and treatment works, flood control and drainage works,
schools, libraries, parks, parking facilities, open space, and
seismic retrofit and rehabilitation of public facilities.
   (b) The Legislature further finds and declares that the methods
available to local agencies to finance public works often place an
undue and unfair burden on buyers of new homes, especially for public
works that benefit the broader community.
   (c) The Legislature further finds and declares that the absence of
practical and equitable methods for financing public works leads to
a declining standard of public works, a reduced quality of life and
decreased safety for affected citizens, increased objection to
otherwise desirable development, and excessive costs for homebuyers.
   (d) The Legislature further finds and declares that because
California's disadvantaged communities, as defined in Section 75005
of the Public Resources Code, may not be beneficiaries of quality
public works, these communities are neglected and, thus, isolated
from and deprived of the basic facilities needed for public health
and safety.
   (e) The Legislature further finds and declares that it is
equitable and in the public interest to provide alternative
procedures for financing public works and services needed to meet the
needs of new housing, disadvantaged communities, and other
development projects.
  SEC. 2.  Section 53395.3 of the Government Code is amended to read:

   53395.3.  (a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer which satisfies the
requirements of subdivision (b), (2) may finance planning and design
work which is directly related to the purchase, construction,
expansion, or rehabilitation of that property  ,  and (3)
the costs described in Sections 53395.5  ,  and
53396.5. A district may only finance the purchase of facilities for
which construction has been completed, as determined by the
legislative body. The facilities need not be physically located
within the boundaries of the district. A district shall not finance
routine maintenance, repair work, or the costs of ongoing operation
or providing services of any kind. A district shall not compensate
the members of the legislative body of the city for any activities
undertaken pursuant to this chapter.
   (b) The district shall finance only  structural or
nonstructural  public capital facilities, including, but not
limited to, all of the following:
   (1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.
   (2) Sewage treatment and water reclamation plants and interceptor
pipes.
   (3) Facilities  and watershed lands used  for the
collection and treatment of water for urban uses.
   (4) Flood  control levees and   management,
including levees, bypasses,  dams, retention basins, and
drainage channels.
   (5) Child care facilities.
   (6) Libraries.
   (7) Parks, recreational facilities,  and open space
  open space, and habitat restoration  .
   (8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
   (c) The district may finance any actions necessary to implement
the Polanco Redevelopment Act (Article 12.5 (commencing with Section
33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety
Code).
   (d) The district may finance any projects that implement a
sustainable communities strategy prepared pursuant to Section 65074.
   (e) Any district which constructs dwelling units shall set aside
not less than 20 percent of those units to increase and improve the
community's supply of low- and moderate-income housing available at
an affordable housing cost, as defined by Section 50052.5 of the
Health and Safety Code, to persons and families of low- and
moderate-income, as defined in Section 50093 of the Health and Safety
Code.
  SEC. 3.  Section 53395.4 of the Government Code is amended to read:

   53395.4.  (a) A district shall not provide any form of financial
assistance to a vehicle dealer or a big box retailer, or a business
entity that sells or leases land to a vehicle dealer or big box
retailer, that is relocating from the territorial jurisdiction of one
local agency to the territorial jurisdiction of another local agency
but within the same market area, as those terms are used in Section
53084.
   (b) A district may finance only the facilities authorized in this
chapter to the extent that the facilities are in addition to those
provided in the territory of the district before the district was
created. The additional facilities may not supplant facilities
already available within that territory when the district was created
but may supplement those facilities as needed to serve new
developments.
   (c) A district may include areas which are not contiguous.
  SEC. 4.  Section 53395.5 of the Government Code is amended to read:

   53395.5.  It is the intent of the Legislature that the
establishment of a district should not ordinarily lead to the removal
of existing dwelling units. If, however, any dwelling units are
proposed to be removed or destroyed in the course of private
development or public works construction within the area of the
district, the legislative body shall do all of the following:
   (a) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons or families of low or moderate income, of an equal number of
replacement dwelling units at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed were inhabited by
persons or families of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
   (b) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons of low or moderate income, a number of dwelling units which
is at least one unit but not less than 20 percent of the total
dwelling units removed at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
   (c) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of Division 7
of Title 1, to persons displaced by any public or private development
occurring within the territory of the district. This displacement
shall be deemed to be the result of public action.
   (d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not take
place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families were
displaced, available and ready for occupancy by the residents of the
units at the time of their displacement. The housing units shall be
suitable to the needs of these displaced persons or families and
shall be decent, safe, sanitary, and otherwise standard dwellings.
  SEC. 5.  Section 53395.6 of the Government Code is amended to read:

   53395.6.  Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an
infrastructure financing plan, including a division of taxes
thereunder, shall be commenced within 30 days after the date the
legislative body adopted the resolution adopting the infrastructure
financing plan pursuant to Section 53395.20. Consistent with the time
limitations of this section, such an action or proceeding with
respect to a division of taxes under this chapter may be brought
pursuant to Chapter 9 (commencing with Section 860) of Title 10 of
Part 2 of the Code of Civil Procedure, except that Section 869 of the
Code of Civil Procedure shall not apply.
  SEC. 6.  Section 53395.7 of the Government Code is amended to read:

   53395.7.  An action to determine the validity of the issuance of
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. However, notwithstanding the time limits specified
in Section 860 of the Code of Civil Procedure, the action shall be
commenced within 30 days after the date the legislative body adopted
the resolution authorizing the issuance of the bonds pursuant to
Section 53397.1, if the action is brought by an interested person
pursuant to Section 863 of the Code of Civil Procedure. Any appeal
from a judgment in that action or proceeding shall be commenced
within 30 days after entry of judgment.
  SEC. 7.  Section 53395.10 of the Government Code is amended to
read:
   53395.10.  A legislative body of a city may designate one or more
proposed infrastructure financing districts pursuant to this chapter.
Proceedings for the establishment of a district shall be instituted
by the adoption of a resolution of intention to establish the
proposed district and shall do all of the following:
   (a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished by
reference to a map on file in the office of the clerk of the city.
   (b) State the type of public facilities proposed to be financed by
the district. The district may only finance public facilities
authorized by Section 53395.3.
   (c) State the need for the district and the goals the district
proposes to achieve by financing public facilities.
   (d) State that incremental property tax revenue from the city and
some or all affected taxing entities within the district may be used
to finance these public facilities.
   (e) Fix a time and place for a public hearing on the proposal.
  SEC. 8.  Section 53395.11 of the Government Code is amended to
read:
   53395.11.  The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district and to each affected taxing entity.

  SEC. 9.  Section 53395.12 of the Government Code is amended to
read:
   53395.12.  The legislative body shall direct the clerk to post a
copy of the resolution of intention to create the district in an
easily identifiable and accessible location on the legislative body's
Internet Web site.
  SEC. 10.  Section 53395.14 of the Government Code is amended to
read:
   53395.14.  After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.13 shall prepare a proposed infrastructure financing plan. The
infrastructure financing plan shall be consistent with the general
plan of the city within which the district is located and shall
include all of the following:
   (a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.
   (b) A description of the public facilities required to serve the
development proposed in the area of the district including those to
be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly. The
description shall include the proposed location, timing, and costs of
the public improvements and facilities.
   (c) A finding that the public facilities provide significant
benefits to an area larger than the area of the district.
   (d) A financing section, which shall contain all of the following
information:
   (1) A specification of the maximum portion of the incremental tax
revenue of the city and of each affected taxing entity proposed to be
committed to the district for each year during which the district
will receive incremental tax revenue. The portion need not be the
same for all affected taxing entities. The portion may change over
time.
   (2) A projection of the amount of tax revenues expected to be
received by the district in each year during which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.
   (3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.
   (4) A limit on the total number of dollars of taxes which may be
allocated to the district pursuant to the plan.
   (5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end. The date shall not
be more than 40 years from the date the legislative body adopted the
resolution adopting the infrastructure financing plan pursuant to
Section 53395.20.
   (6) An analysis of the costs to the city of providing facilities
and services to the area of the district while the area is being
developed and after the area is developed. The plan shall also
include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city as a result of expected
development in the area of the district.
   (7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.
   (e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in the
course of private development or public works construction within the
area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with the
requirements of Section 53395.5.
   (f) The goals the district proposes to achieve by financing public
facilities.
  SEC. 11.  Section 53395.19 of the Government Code is amended to
read:
   53395.19.  (a) The legislative body shall not enact a resolution
forming a district and providing for the division of taxes of any
affected taxing entity pursuant to Article 3 (commencing with Section
53396) unless a resolution approving the plan has been adopted by
the governing body of each affected taxing entity which is proposed
to be subject to division of taxes pursuant to Article 3 (commencing
with Section 53396) has been filed with the legislative body at or
prior to the time of the hearing.
   (b) In the case of an affected taxing entity that is a special
district which provides fire protection services and where the county
board of supervisors is the governing authority or has appointed
itself as the governing board of the district, the plan shall be
adopted by a separate resolution approved by the district's governing
authority or governing board.
   (c) Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan and
adopting a resolution forming the infrastructure financing district
without allocation of the tax revenues of any affected taxing entity
that has not approved the infrastructure financing plan by resolution
of the governing body of the affected taxing entity.
  SEC. 12.  Section 53395.20 of the Government Code is amended to
read:
   53395.20.  (a) At the conclusion of the hearing required by
Section 53395.17, the legislative body may adopt a resolution
adopting the infrastructure financing plan, as modified, and
approving the formation of the infrastructure financing district in a
manner consistent with Section 53395.19, or it may abandon the
proceedings.
   (b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the legislative body shall direct the
clerk to mail an annual report to each owner of land within the
district and each affected taxing entity. The legislative body shall
direct the clerk to post this annual report in an easily identifiable
and accessible location on the legislative body's Internet Web site.
The annual report shall contain all of the following:
   (1) A summary of the district's expenditures.
   (2) A description of the progress made towards the district's
adopted goals.
   (3) An assessment of the status regarding completion of the
district's public works projects.
   (c) If the district fails to provide the annual report required by
subdivision (b), the district shall not spend any funds to construct
public works projects until the annual report is submitted.
   (d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public works
projects; provided, however, the district may complete any public
works projects that it had started. Any excess property tax increment
revenues that had been allocated for new public works projects shall
be reallocated to the affected taxing entities.
  SEC. 13.  Section 53395.21 of the Government Code is repealed.
  SEC. 14.  Section 53395.22 of the Government Code is repealed.
  SEC. 15.  Section 53395.23 of the Government Code is repealed.
  SEC. 16.  Section 53395.24 of the Government Code is repealed.
  SEC. 17.  Section 53395.25 of the Government Code is repealed.
  SEC. 18.  Section 53396 of the Government Code is amended to read:
   53396.  Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the resolution adopted pursuant to
Section 53395.20 to create the district, shall be divided as follows:

   (a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
resolution adopted pursuant to Section 53395.20 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
   (b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53395.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the district. Unless and
until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
  SEC. 19.  Section 53397.1 of the Government Code is amended to
read:
   53397.1.  The legislative body may, by majority vote, authorize
the issuance of bonds pursuant to this chapter by adopting a
resolution.
  SEC. 20.  Section 53397.2 of the Government Code is amended to
read:
   53397.2.  The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
   (a) A description of the facilities to be financed with the
proceeds of the bond issue.
   (b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the bond
issuance.
   (c) The maximum interest rate and discount on the bond issuance.
   (d) A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
   (e) A finding that the amount necessary to pay the principal of,
and interest on, the bond issuance will be less than, or equal to,
the amount determined pursuant to subdivision (d).
   (f) The issuance of the bonds in one or more series.
   (g) The date the bonds will bear.
   (h) The denomination of the bonds.
   (i) The form of the bonds.
   (j) The manner and execution of the bonds.
   (k) The medium of payment in which the bonds are payable.
   (l) The place or manner of payment and any requirements for
registration of the bonds.
   (m) The terms or call of redemption, with or without premium.
  SEC. 21.  Section 53397.4 of the Government Code is repealed.
  SEC. 22.  Section 53397.5 of the Government Code is repealed.
  SEC. 23.  Section 53397.6 of the Government Code is repealed.
  SEC. 24.  Section 53397.7 of the Government Code is repealed.